MediaTek to see record shipments of 4G phone chips in 2Q16

MediaTek to see record shipments of 4G phone chips in 2Q16

Cage Chao, Taipei; Jessie Shen, DIGITIMES [Monday 18 April 2016]

MediaTek is expected to see record shipments of 4G phone chips in the second quarter of 2016 with revenues rising 15-20% on quarter, according to industry sources.

MediaTek's shipments of 4G phone chips are expected to rise 20-30% sequentially in the second quarter, buoyed by replenishment demand prior to China's May 1 holiday, as well as customers' roll-outs of new models, said the sources. Shipments of MediaTek's 4G phone chips during the quarter are also likely to be the highest number ever recorded in the company's history, the sources added.

Brisk 4G-phone chip shipments are expected to boost MediaTek's revenues 15-20% sequentially in the second quarter of 2016, the sources indicated.

In addition, MediaTek previously remarked that the company is aiming for record revenues and shipments of smartphone chips in 2016. Progress towards achieving the goal the company is set to be well ahead of schedule, the sources noted.

Nevertheless, MediaTek's gross margin and profitability for 2016 will remain under pressure due to rising competition among smartphone-chip suppliers resulting in falling chip prices, the sources said.

MediaTek has reported consolidated revenues of NT$21.34 billion (US$657.6 million) for March 2016, up 61.1% on month and 4.6% on year. Revenues totaled NT$55.91 billion for the first quarter of 2016, rising 17.6% from a year earlier.